Markets Rally As Israel-Iran Tensions Rise; Backed By Strong Fundamentals

The Indian stock markets demonstrated strength on Monday amid mounting geopolitical tensions between Israel and Iran. Investors continued to back long-term fundamentals despite growing uncertainties in the Middle East.

The benchmark indices, Sensex and Nifty, closed the day on a strong note. Both indices gained nearly 1 per cent each, reflecting resilient investor sentiment despite volatility.

The Sensex rose by 677.55 points, or 0.84 per cent, to close at 81,795 after touching an intra-day high of 81,862.52. The Nifty surged by 227.9 points, or 0.92 per cent, to settle at 24,946.50.

Broader markets reflect strength

The broader markets also exhibited gains. The Nifty Midcap 100 climbed 0.93 per cent, while the Nifty Smallcap 100 advanced by 0.95 per cent.

On the sectoral front, all indices ended the day in the green. The Nifty IT index emerged as the top gainer, rising 1.57 per cent, followed by Realty with a 1.32 per cent gain, Oil & Gas up 1.11 per cent, and Metal up 1.07 per cent.

Banking, FMCG, Pharma, and Media sectors also closed with gains, indicating broad-based buying across the market.

Top gainers and losers

On the Sensex, Ultratech Cement, Tech Mahindra, HCL Tech, TCS, Kotak Mahindra Bank, and Infosys were among the top gainers, each rising up to 2.4 per cent.

Tata Motors emerged as the top loser, shedding 3.76 per cent. Sun Pharma also closed in the red.

The India VIX, a key indicator of market volatility or the ‘fear index’, declined by 1.6 per cent to 14.83. A drop in the VIX indicates lower volatility and a more positive outlook for the markets.

Vinod Nair, Head of Research at Geojit Financial Services, stated that despite the ongoing geopolitical tensions between Israel and Iran, the markets moved higher, supported by gains in large-cap stocks.

“Geopolitical developments in the Middle East are likely to influence near-term market sentiment, with any signs of de-escalation being closely monitored. Small-cap stocks are expected to underperform in the short term due to elevated valuations and a lack of immediate triggers,” he noted.

Also Read: Indian Markets Open Green Despite Geopolitical Tensions In Middle East